Estée Lauder is in discussions with Puig over a potential merger that could create a combined business valued at around $40 billion. The talks remain ongoing, and Estée Lauder said no final agreement has been reached.
The company stated that “unless and until an agreement is signed… there can be no assurances regarding the deal or its terms.”
Companies And Brand Portfolios
Estée Lauder is one of the world’s largest manufacturers of skincare, cosmetics, and fragrances.
Its portfolio includes brands such as Clinique, Bobbi Brown, and Tom Ford.
The company was founded in 1946 in New York by Estée Lauder and her husband Joseph Lauder.
It began with four products and has grown into the second-largest cosmetics company globally, behind L’Oréal.
Puig, headquartered in Barcelona, was founded in 1914 and remains controlled by the Puig family.
Its portfolio includes fragrance and fashion brands such as Rabanne, Jean Paul Gaultier, Carolina Herrera, and Dries Van Noten.
The company operates in 150 countries and reported revenue exceeding €5 billion in 2025.
Market Context And Strategic Considerations
A merger would combine two major players in the global beauty industry, expanding scale across skincare, cosmetics, and fragrances.
The discussions come as Estée Lauder works to improve performance after facing weaker sales.
The company implemented job cuts last year as part of efforts to stabilise operations and support growth.
Following reports of the potential deal, Estée Lauder’s shares fell nearly 8% on Monday.
Recent Activity In The Beauty Sector
The talks follow other transactions in the beauty industry.
Rhode was acquired by E.l.f. Beauty in a deal valued at up to $1 billion.
Separately, Kering, owner of Gucci, agreed last year to sell its beauty division to L’Oréal for €4 billion.
These transactions reflect ongoing consolidation among companies seeking scale and portfolio expansion within the sector.
Featured image credits: Wikimedia Commons
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